Palomar Holdings Intrinsic Value – PALOMAR HOLDINGS Reports 12.8% Revenue Increase in FY2022 Q4 with USD 18.8 Million Earnings
March 7, 2023
Earnings Overview
PALOMAR HOLDINGS ($NASDAQ:PLMR) announced their Q4 FY2022 earnings results on February 15 2023, reporting a total revenue of USD 18.8 million – a 12.8% rise compared to the year prior. Net income was also up 21.1%, reaching USD 88.6 million.
Transcripts Simplified
Palomar Holdings reported net income of $18.8 million or $0.73 per share for the fourth quarter of 2022 compared to net income of $16.6 million or $0.64 per share for the same quarter last year. Adjusted net income for the fourth quarter was $21.1 million or $0.82 per share compared to $17.6 million or $0.68 per share for the same quarter of 2021. Gross written premiums for the fourth quarter of 2022 increased 59.5% to $239.1 million and net earned premiums increased 21.2% to $82.2 million.
The attritional loss ratio was 20.1% and the catastrophe loss ratio was 2.3%. Annualized adjusted return on equity was 22.4%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Palomar Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 327.09 | 52.17 | 15.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Palomar Holdings. More…
| Operations | Investing | Financing |
| 145.33 | -58.19 | -13.04 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Palomar Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.3k | 914.06 | 15.37 |
Key Ratios Snapshot
Some of the financial key ratios for Palomar Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.4% | – | 20.9% |
| FCF Margin | ROE | ROA |
| 42.7% | 11.4% | 3.3% |
Stock Price
PALOMAR HOLDINGS released its financial results for the fourth quarter of FY2022 on Wednesday. The company reported a 12.8% increase in revenue year-on-year, amounting to USD 18.8 million. The company attributed this success to its diversified portfolio and strategic investments in the past year. This positive news caused a surge in PALOMAR HOLDINGS stock, as it opened at $49.3 and closed at $52.5, rising 6.4% from the previous closing price of $49.4.
The stock has been steadily gaining in the past few weeks and this report is likely to further build investor confidence in the company. The company’s stock performance and financial results demonstrate the success of PALOMAR HOLDINGS in adapting to the ever-changing conditions of the market, resulting in impressive bottom-line figures for the end of the financial year. The company is now looking ahead to FY2023 with optimism, expecting to continue its positive momentum. Live Quote…
Analysis – Palomar Holdings Intrinsic Value
At GoodWhale, we have taken a look at the fundamentals of PALOMAR HOLDINGS and conducted our proprietary analysis. Our Valuation Line gave us a fair value of around $115.2 for the PALOMAR HOLDINGS share. However, the stock is currently being traded at a price of $52.5, which is undervalued by 54.4%. This presents an opportunity for investors to buy and benefit from the potential upside the stock has. More…
Peers
The Company’s segments include Insurance, Reinsurance and Corporate. The Company’s insurance subsidiaries provide property and casualty insurance in the non-standard personal automobile insurance market. The Company’s reinsurance subsidiaries provide excess and surplus lines reinsurance. The Company’s Corporate segment includes the operations of Palomar Specialty Insurance Company (PSIC), which is a captive reinsurance company. The Company’s competitors include United Insurance Holdings Corp, Heritage Insurance Holdings Inc, Universal Insurance Holdings Inc.
– United Insurance Holdings Corp ($NASDAQ:UIHC)
United Insurance Holdings Corp is a property and casualty insurance holding company. The Company through its subsidiaries is engaged in providing property and casualty insurance to policyholders in the United States. As of December 31, 2016, the Company’s primary insurance subsidiaries had an A.M. Best rating of A- (Excellent).
– Heritage Insurance Holdings Inc ($NYSE:HRTG)
Heritage Insurance Holdings Inc is a Florida-based insurance holding company that offers property and casualty insurance in the United States through its subsidiaries. The company has a market cap of $37.99 million and a return on equity of -49.54%. Heritage Insurance Holdings Inc offers a range of personal and commercial insurance products, including home, auto, and business insurance. The company’s products are available through a network of independent insurance agents.
– Universal Insurance Holdings Inc ($NYSE:UVE)
As of 2022, Universal Insurance Holdings Inc has a market cap of 280.44M. The company is a holding company that operates through its subsidiaries to provide property and casualty insurance protection to homeowners, condominium owners, and renters in the United States.
Summary
PALOMAR HOLDINGS has delivered strong financial results for the fourth quarter of FY2022, with total revenue increasing by 12.8% and net income growing by 21.1%. This bodes well for investors looking to invest in the company, as the strong results suggest that the company’s operations have continued to improve since the previous year. Additionally, the stock price moved up the same day, further reinforcing the positive outlook. All in all, PALOMAR HOLDINGS appears to be a sound investment opportunity at this time.
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